Definition of "Offences by companies [section 9aa]"

This concept is known as the principle of vicarious liability. Section 9AA of the Act makes every person responsible to and every person in charge of the business of the company at the time of commission of the offence to be guilty of offence besides the company itself. However it wil be a defence for such a person that the offence was committed without his knowledge or that he had exercised due diligence to prevent the commission of the offence.